The Hindu Business Line : Centre to focus on biomass for village electrification

According to rough estimates, the cost of installing biomass-based power generation units is around Rs 3 crore per megawatt against Rs 4-4.5 crore for mini hydel units.

Kolkata , Aug. 9

THE new energy policy of the Centre will focus on use of biomass for remote village electrification. A detailed scheme for subsidising up to 90 per cent of such projects of 10 kW to 40 kW generation capacities is expected to be finalised by early next month. The project will open up vast opportunities for manufacturers working in the field of producer gas-based power generation.

According to sources in the Ministry of Non-Conventional Energy Sources, the Ministry is busy fixing the modalities related to the new scheme to ensure better fund utilisation and smooth running of the installed capacities. "The effort is to take lessons from the past where many such units went out of order soon after installation and realisation of subsidy."

Though use of solar energy and mini hydel schemes are also on the agenda for rural electrification, the Ministry is primarily focussing on use of biomass-based schemes considering both cost and input availability.

According to rough estimates, the cost of installing biomass-based power generation units is around Rs 3 crore per megawatt against Rs 4-4.5 crore for mini hydel units. Photovoltaic or solar systems cost even more.

Apart from generating biomass from cheap agri wastes such as rice husk, cashew shells, groundnut shell, mustard seed husk and stem, corn cob, coconut shell and coffee husk, the Ministry is also encouraging the use of forest waste in villages.

In a major shift from the past, the Centre now wants the district rural development agency (DRDA) and the forest department, which has a countrywide reach, to include rural electrification in their agenda for better implementation of such schemes. District advisory committees for rural energy are to be formed with representation from the district administration, DRDA and Panchayati Raj institutions.

However, sources said the biggest change was likely to come in the field of equipment supply and implementation. Unlike in the past, the Ministry now prefers equipment suppliers to install projects on a turnkey basis with a two- year warranty followed by a long-term maintenance contract on the entire project.

They added that the turnkey contractor would also have to set up the transmission and distribution network in the village and train local people to run the units.

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